12:01 PM, January 10, 2012

Detroit Free Press Business Writer

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Ford will not be profitable in Asia-Pacific this year, Lewis Booth, chief financial officer, told investors Tuesday at an event in conjunction with the North American International Auto Show in Detroit.

Booth provided the new guidance that is an update from the third-quarter forecasts that all of the automaker’s business units would report a profit for 2011.

Flooding in Thailand proved more devastating than originally forecast. Production of the new Ford Ranger pickup was down for several weeks.

Additionally, Ranger production in South Africa was affected because the plant relies on parts from Thailand.

Europe, which continues to struggle with sovereign debt issues, is forecast to have a market of 14 million to 15 million sales this year, said Ford of Europe chief Stephen Odell. Europe ended 2011 with about 15.3 million sales.

“We need to eventually get back to 18 million,” Odell said in a meeting with reporters Monday night.

Plants in Europe have some flexibility to deal with dropping demand because of their use of temporary labor and in some countries there is government compensation for underutilized capacity.

Odell said Ford has been able to reduce its inventory to about 57 days’ supply, “which is the lowest in a long time.”

Alan Mulally, CEO, reaffirmed that Ford will end the year with a net profit greater than the $8.4 billion reported in 2010.

But the fourth quarter will be difficult, Mulally said, because of the flooding, higher commodity costs and labor-related costs. Ford settled a new contract with the United Auto Workers this fall that includes investment in vehicles, plants and jobs.

Mulally also joked that no member of his management team would be leaving. He referred to reports that Booth would be retiring in the first half of the year, paving the way for the grooming of a new CFO now and a replacement for Mulally in a year or two.

Booth has refused comment on the subject, other than to say his name is still on his door.